Standard Chartered's Kay, overseer of $1 billion Indonesia loan, resigns

Wed Oct 17, 2012 2:38am EDT
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By Lawrence White and Prakash Chakravarti

HONG KONG (Reuters) - Standard Chartered's head of leveraged finance syndication has resigned to pursue other interests, the bank said on Wednesday.

Peter Kay's departure comes amid a reshuffle in its debt business and as the lender struggles to sell down a $1 billion loan to Indonesian businessman Samin Tan, the chairman of troubled Bumi Plc BUMIP.L.

Tan used the funds to buy a stake in the coal firm last year, and his investment crumbled as the company's shares fell sharply.

Kay resigned at the end of September, according to StanChart spokeswoman Valerie Tay. Calls to Kay's mobile phone were not returned.

He joined StanChart in December 2009 and had over 20 years' experience in leveraged financing across Europe, the United States and Asia. He reported to Philip Cracknell, global head of loan syndications and deputy head of capital markets.

As the leveraged finance syndication head, Kay and his team were responsible for, among other things, selling on a portion of a corporate loan to other institutions to reduce the risk of holding the entire amount.

Among other projects, Kay was tasked with distributing the $1 billion loan that the bank wholly underwrote almost a year ago on behalf of Tan's Borneo Lumbung Energi (BORN.JK: Quote), after it bought a 23.8 percent stake in Bumi Plc from Indonesia's Bakrie Group.

The size of the Borneo loan is a small fraction of the bank's overall lending book, but is one of the single largest underwritten loans by any bank in Asia in 2011.   Continued...

A staff member walks inside a priority banking service area of a Standard Chartered bank in Hong Kong August 1, 2012. REUTERS/Bobby Yip